They paid some to their arrears when they have money but It’s so far behind, even when they get their job back (blue collar) they wont be able to pay their arrears in full anytime soon, esp with Covid is spiking again.What are my options here?

The Achilles heel of my investment portfolio is high interest rates. 

In the last 2 weeks, we've seen yet another spike in Daily Listing.

We've already seen a spike in mortgage delinquencies this year that finally came down a little last month.

do they tend to spike after a price decrease?

Being in NY through our Covid situation, I know how quickly life seems to get back to "normal" once the cases spike and slow down again.

I’ve seen advertisements for a company called Tar Heel basement systems, I haven’t personally used them but have seen them advertised as an option.

Sleep well knowing that if the loan is called or the interest rate spikes, or your spouse starts arguing with you because they're listening to too much Dave Ramsey and don't yet understand, you can sell your investment and pay off the LOC within a fairly short order.Don't fear the beast. 

They want you to make the first move so that they can catch you with too high of an offer or put you on your heels so you'll falter and give up more than you intended.

Small houses bring in small bucks, but they are as difficult to rent out as it is to pour water out of a boot with the directions printed on the heel.